Why kiting checks is not good for yor credit and home repair loans.

Credit card kiting refers to the fraudulent practice of moving money from a single or more credit cards to some other credit cards, making use of the credit available on the various credit cards to pay for living costs and for incurring other expenses, while making the minimum payments on the credit card accounts. The Credit Bureau feels that the person has good monetary stability since all costs are being paid according to the agreements. Credit card kiting makes it very difficult to determine when there is a financial problem with a particular individual.

According to the trial court, credit card kiting fraud can be proved against an individual if the following elements are established:

• that the accused person made a representation;
• that the accused person knew the representation was false at the time he made it;
• that the accused person made the representation with actual intent to deceive;
• that the accusing company justifiably relied on the representations; and
• that the accusing company sustained a loss caused by the false representation.

Fraud is not committed if a minimum payment with a cash advance is made from another credit card. Lack of intent to repay denotes credit card kiting fraud.

[tags]credit card kiting,kiting checks[/tags]